Myths About Homeownership
by: Damon Thomas
Lenders evaluate mortgage applications a lot differently today than they did even 10 years ago. And even more has changed in the last 20 years. What used to close the door to homeownership may not be a factor today.
Myth: You need great credit to become a homeowner.
Fact: You may still be able to buy a home with less-than-perfect credit. And remember, you can improve your credit over time.
Myth: You need to put 20% down to buy a home.
Fact: There are many types of mortgage products and programs that allow low and no down payments. But remember to factor in other costs such as closing costs, property taxes, etc.
Myth: You can't buy a home in the U.S. if you're not a citizen.
Fact: If you're a legal resident, you can purchase a home in the U.S.
Myth: If you don't have a bank account or credit cards, you can't qualify for a mortgage.
Fact: Having a bank account is always a good idea and helps you establish credit. However, lenders can approve you for a mortgage even if you don't have a bank account or credit cards. You'll need to keep records showing a history of payments you've made for items such as rent, utilities, and car payments.
Here are some common homeownership myths and realities, provided by Freddie Mac. More of these myths and realities can be found at www.casanuevahouston.com and www.casanuevasanantonio.com.
About The Author:
Damon Thomas is a contributor to www.casanuevahouston.com, a Houston-based company that provides information for new home buyers.
March 2006
Disclaimer: The information presented and opinions expressed in these articles are those of the authors and do not necessarily represent the views of BIZBUD.com and/or its partners.
Unless otherwise stated, the contents of this site are
Copyright © 2006 BIZBUD.com - All rights reserved.
Articles are copyright materials of their respective authors.
|
